Credit utilization

[pipeguy]

I suspect that a major factor in not having a stronger score is you have 2 very low limit starter cards with a combined $700 limit and you are asking for a lender to approve a 6 figure ($100,000 plus) loan.

Adding an installment loan and a 3rd bank card, even a store card or a secured Discover or BoA card would give you a major boost in your scores. I'm assuming you have a very thin file because you have "young credit" and not due to derogatory marks on your reports.

High scores are achieved using revolving (ideally at least 3 cards), installment (auto loan, furniture loan, personal loan) and a mortgage.  Of course, there are other factors such as the age of your accounts, utility, and inquiries but the "mix" of credit products is a major factor in high achievers. 

[HeavenOhio]

Furniture loans are often issued by consumer finance companies, which can be seen as negatives by FICO.

Adding a card or any kind of credit to prop up a score for a mortgage that's in the near future is rarely advised and almost universally advised against. We've seen exceptions here on the board, but they're still generally countered by someone who says "no, no, no." If we do see the suggestion to add a card, the mortgage app tends to be months in the future rather than weeks.

[pipeguy]

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@HeavenOhio wrote:

Furniture loans are often issued by consumer finance companies, which can be seen as negatives by FICO.

Adding a card or any kind of credit to prop up a score for a mortgage that's in the near future is rarely advised and almost universally advised against. We've seen exceptions here on the board, but they're still generally countered by someone who says "no, no, no." If we do see the suggestion to add a card, the mortgage app tends to be months in the future rather than weeks.

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I don't disagree with your comments at all (I was not thinking about a captive furniture loan, just a reason for an installment type loan). What I was thinking was that someone with 2 mini-credit limit starter cards totaling $700 had very little if any chance of securing a mortgage based on their existing credit history. My comments were targeted at creating a profile that could get approved for a mortgage in the future.